Newly Appointed Treasury Secretary Scott Bessent Halts CFPB Activities
Washington, D.C. - President Donald Trump has designated newly confirmed Treasury Secretary Scott Bessent as acting director of the Consumer Financial Protection Bureau (CFPB), the agency announced Monday. Bessent has promptly suspended virtually all CFPB operations, including investigations, litigation, rulemaking, and public communications, as per an email obtained by Reuters.
Bessent's appointment comes after President Trump replaced Director Rohit Chopra last week. Under Chopra's leadership, the CFPB aggressively enforced consumer finance regulations, leading to conflicts with the tech industry and banking sector over issues such as digital wallet oversight and credit card fees, continuing through the final days of the previous administration.
Bessent's statement expressed his commitment to advancing President Trump's economic agenda. The news was initially reported by Bloomberg. In an agency-wide email, Bessent emphasized the need to align with the Trump administration's objectives, instructing all staff and contractors to refrain from taking new actions "unless expressly approved by the acting director or required by law."
The agency's legal team has notified a federal appeals court of its intent to request a stay of proceedings and not defend a lawsuit. Lindsey Johnson, CEO of the Consumer Bankers Association, welcomed Bessent's appointment, stating that he has an immediate opportunity to overturn Chopra's "partisan policies."
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee who was instrumental in establishing the CFPB after the 2008 financial crisis, criticized Bessent's decision to halt enforcement activities, calling it an invitation to corporate misconduct. "Shutting down CFPB enforcement actions that are about to deliver funds to working families contradicts President Trump's claim of wanting to lower costs for families, something he has hardly done," she stated.
Bessent, confirmed as Treasury Secretary last month, is a former Trump campaign advisor and Wall Street veteran who shares Trump's preference for deregulation. He is not the first CFPB acting director to hold multiple positions simultaneously. In his previous term, President Trump appointed White House budget director Mick Mulvaney to lead the agency.
The CFPB's existence was challenged in May when the Supreme Court rejected industry-backed constitutional arguments against its funding structure. However, Democrats in Congress fear that the Republican majority may soon attempt to fulfill their previous pledges to reduce or take control of the CFPB's funding, currently provided by the Federal Reserve, which protects it from the partisan influence of congressional spending approvals.